Dogecoin ($DOGE) Prepares for Breakout with Bollinger Squeeze
The post Dogecoin ($DOGE) Prepares for Breakout with Bollinger Squeeze appeared on BitcoinEthereumNews.com.
Dogecoin ($DOGE) is currently experiencing a tightening phase on the 12-hour chart, as indicated by the narrowing of Bollinger Bands. This technical signal is often a precursor to a major price move, leading traders and analysts to closely monitor the situation for any potential breakout or breakdown in price action. Over the past few days, Dogecoin has been consolidating within a tight range, showing minimal price movement, which is characteristic of a period of low volatility. According to Crypto Analyst Ali Martinez,The narrowing of Bollinger Bands on the chart signifies that market volatility is decreasing. Bollinger Bands are volatility indicators, consisting of a moving average and two standard deviation bands that expand and contract based on market volatility. When the bands begin to squeeze together, it typically signals that the market is about to experience a sharp price movement, either up or down, as traders prepare for a breakout. For Dogecoin, this could mark the beginning of a significant price movement. The chart depicts this narrowing with the price of Dogecoin gradually moving towards the upper limit of the Bollinger Bands, indicating that buying pressure may be increasing. However, the price has not yet decisively broken through the upper boundary, leaving the market in a state of anticipation. Volume, Momentum, and Sentiment Drive Dogecoin The momentum of Dogecoin’s price action is also essential to consider during this consolidation phase. A breakout from the current tight range is likely to be accompanied by a significant increase in trading volume. When the price moves beyond the tight squeeze, a surge in volume would confirm the direction of the breakout, whether it’s upward or downward. Looking at the recent price history, Dogecoin has shown some signs of upward momentum, pushing toward the higher end of the Bollinger Bands. However, without a solid volume…
Filed under: News - @ March 24, 2025 10:25 pm